Latest news with #AtlanticUnionBankshares
Yahoo
4 days ago
- Business
- Yahoo
Blackstone Gobbles Up Another $2 Billion In Commercial Real Estate Loans
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Private-equity giant Blackstone (NYSE: BX) recently acquired $2 billion in discounted commercial real estate loans. The company has been aggressively buying commercial loans for much of the last two years, and the latest acquisition brings the total value of its shopping spree to $20 billion. Blackstone bought these loans from Richmond-based lender Atlantic Union Bankshares (NYSE:AUB). Although most of the loans are performing, Atlantic Union made them before interest rates started increasing, which has significantly diminished their value. Blackstone was able to use the loan's decline in value to negotiate a 7% discount off their face value. Don't Miss: Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Here's , starting today. $100k+ in investable assets? – no cost, no obligation. Buying discounted commercial loans is one of Blackstone's major profit centers, and the current state of the commercial market is creating ample opportunity for Blackstone to make new acquisitions. The runup in interest rates has put many regional lenders in a difficult position. Many of them began lending aggressively in the commercial sector after the 2008 financial crisis led the Federal Reserve to dramatically lower interest rates. They viewed commercial loans as safer than residential loans, and the size of the deals made them extremely profitable in the short term. Many banks got overextended, although they didn't necessarily realize it until the Federal Reserve began rapidly raising rates after the COVID crisis. The crisis caused vacancy rates to spike, which led commercial real estate owners to lower rents. Together, these factors drastically reduced property values and investor returns. The kick-on effect for commercial lenders is that many of them found they were holding loans on properties that were upside down. Several regional banks went under because the unrealized losses in their commercial loan portfolios exceeded the bank's total assets. Other banks sought to prevent that possibility by selling off large tranches of their commercial loan portfolios at a discount. Trending: BlackRock is calling 2025 the year of alternative assets. That's where Blackstone comes into the equation. Blackstone's most recent purchase comes on the heels of Atlantic Union's April merger with Maryland-based regional lender Sandy Spring Bancorp. A majority of the discounted portfolio Blackstone purchased consists of loans that originated with Sandy Spring. According to the Journal, discounting Sandy Spring's portfolio was a condition of the merger agreement. The Journal also speculates that there could be an uptick in loan portfolio sales if merger activity among regional banks continues to increase. A more relaxed regulatory atmosphere under President Donald Trump could pave the way for that scenario. In the meantime, there is no indication that Blackstone is slowing down its acquisitions of commercial loan portfolios. It remains to be seen if Blackstone's approach will pay off in the long term. Acquiring the loans at a discount, plus having them secured by underlying commercial assets, may be enough protection from the downside potential, but there is no guarantee. The commercial sector must exhibit sustained momentum over several years to reverse its slide. If that happens, Blackstone's discounted loan portfolios could be a big winner for investors. Read Next: In terms of getting money back, . Over the last five years, the price of gold has increased by approximately 83% — Investors like Bill O'Reilly and Rudy Giuliani are . Image: Shutterstock This article Blackstone Gobbles Up Another $2 Billion In Commercial Real Estate Loans originally appeared on
Yahoo
04-07-2025
- Business
- Yahoo
Undervalued Stock Estimates For Consideration In July 2025
The United States market has shown a positive trajectory, rising 2.1% in the past week and climbing 14% over the last year, with earnings projected to grow by 15% annually. In this environment, identifying undervalued stocks can be a strategic move for investors seeking opportunities that may offer potential value relative to their current price levels. Name Current Price Fair Value (Est) Discount (Est) Verra Mobility (VRRM) $25.65 $50.98 49.7% UMH Properties (UMH) $17.34 $34.40 49.6% SharkNinja (SN) $107.24 $210.61 49.1% Roku (ROKU) $88.27 $173.98 49.3% Privia Health Group (PRVA) $22.11 $43.37 49% MAC Copper (MTAL) $12.03 $23.79 49.4% Insteel Industries (IIIN) $39.23 $76.74 48.9% Carter Bankshares (CARE) $18.25 $35.50 48.6% Atlantic Union Bankshares (AUB) $33.54 $65.94 49.1% Acadia Realty Trust (AKR) $18.64 $36.44 48.8% Click here to see the full list of 175 stocks from our Undervalued US Stocks Based On Cash Flows screener. Let's explore several standout options from the results in the screener. Overview: Atlantic Union Bankshares Corporation, with a market cap of $4.78 billion, operates as the bank holding company for Atlantic Union Bank, offering a range of banking and financial services to consumers and businesses in the United States. Operations: The company generates revenue through its Consumer Banking segment, which accounts for $359.18 million, and its Wholesale Banking segment, contributing $394.66 million. Estimated Discount To Fair Value: 49.1% Atlantic Union Bankshares is trading at US$33.54, significantly below its estimated fair value of US$65.94, indicating potential undervaluation based on cash flows. Despite recent shareholder dilution, the company's revenue and earnings are forecast to grow substantially faster than the market over the next three years. Recent executive changes include a planned CFO retirement and a new chief risk officer appointment, with continued dividend affirmations supporting investor confidence in stable cash flow management. Our expertly prepared growth report on Atlantic Union Bankshares implies its future financial outlook may be stronger than recent results. Unlock comprehensive insights into our analysis of Atlantic Union Bankshares stock in this financial health report. Overview: Dayforce Inc. is a human capital management (HCM) software company operating in the United States, Canada, Australia, and internationally with a market cap of $9.16 billion. Operations: The company's revenue segment is Human Capital Management (HCM), generating $1.81 billion. Estimated Discount To Fair Value: 36.9% Dayforce, trading at US$57.27, is significantly below its fair value estimate of US$90.73, highlighting potential undervaluation based on cash flows. Despite a dip in profit margins from 3.3% to 1.4%, earnings are projected to grow substantially faster than the market at 37.1% annually over the next three years. Recent contracts with major clients like the Government of Canada and Hubexo underscore strong demand for its comprehensive HR solutions, supporting long-term revenue growth prospects. Our comprehensive growth report raises the possibility that Dayforce is poised for substantial financial growth. Click to explore a detailed breakdown of our findings in Dayforce's balance sheet health report. Overview: Reddit, Inc. operates a digital community platform both in the United States and internationally, with a market cap of approximately $28.98 billion. Operations: The company's revenue is primarily generated from its Internet Information Providers segment, totaling $1.45 billion. Estimated Discount To Fair Value: 36.8% Reddit, Inc. is trading at US$157.03, significantly below its fair value estimate of US$248.32, suggesting undervaluation based on cash flows. The company recently reported a shift to profitability with a net income of US$26.16 million in Q1 2025 and anticipates revenue growth between US$410 million and US$430 million for the next quarter. Its inclusion in multiple Russell indices reflects growing market recognition, while extended credit facilities support financial stability amidst high earnings growth projections exceeding market averages. Our growth report here indicates Reddit may be poised for an improving outlook. Delve into the full analysis health report here for a deeper understanding of Reddit. Click here to access our complete index of 175 Undervalued US Stocks Based On Cash Flows. Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports. Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include AUB DAY and RDDT. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-06-2025
- Business
- Yahoo
Blackstone Just Bought $2 Billion in Real Estate Loans--Here's Why It Matters Now
After completing its merger with Sandy Spring Bancorp in April, Atlantic Union Bankshares (NYSE:AUB) wasted no time reshaping its balance sheet. This week, the Richmond-based bank sold roughly $2 billion worth of performing commercial real estate loansoriginally acquired from Sandy Springto Blackstone (NYSE:BX), via its real estate debt platform BREDS. The loans had already been earmarked for sale as of April 1 and were ultimately priced in the low 90s to par. Atlantic Union will continue servicing the customers, while using the sale proceeds to pay down expensive funding sources and boost its securities portfolio. Warning! GuruFocus has detected 5 Warning Signs with BX. For Atlantic Union, this is all about simplification and risk management. CEO John Asbury called the transaction a clean execution that supports future growth and reduces CRE exposurekey for post-merger integration. Blackstone, meanwhile, sees another opportunity to expand its growing footprint in real estate credit. The $76 billion BREDS platform has now added $20 billion in CRE loan purchases over the past two years, including chunks of the failed Signature Bank portfolio and a $1 billion haul from Germany's PBB. Tim Johnson, head of Blackstone Real Estate Debt Strategies, said this deal highlights the firm's ability to craft bespoke solutions for banks offloading real estate risk. With rising rates and shifting valuations still pressuring CRE portfolios, private capital is stepping in aggressivelyand at discounted pricing. For Blackstone, that could mean solid upside. For regional banks like Atlantic Union, it's a way to stay liquid and lean while the dust settles. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data
Zawya
27-06-2025
- Business
- Zawya
Blackstone deepens CRE bet with $2bln loan purchase from Atlantic Union
Alternative asset manager Blackstone has bought nearly $2 billion worth of commercial real estate loans from regional lender Atlantic Union Bankshares , further extending its aggressive push into the CRE sector. The loans were bought at a slight discount to their face value, the companies said on Thursday. The loans originated from Sandy Spring Bank, which Atlantic Union bought in a $1.6 billion deal in April. The sale enables Atlantic Union to swiftly reduce its exposure to CRE loans, a segment that has been under pressure due to elevated interest rates and increasing office vacancies driven by the rise of remote work. Proceeds from the sale will enable Atlantic Union to pay down costly deposits and expand its portfolio of securities investments, the company said. "We view the sale as a positive, as completion of the transaction at a reasonable price had been a question for some," Raymond James analysts wrote in a note, reiterating their "strong buy" rating on the stock. Meanwhile, for Blackstone, the deal was another opportunity to acquire CRE assets at a discount. The company has been ramping up its exposure to the sector over recent years, notably through the acquisition of a stake in the $17 billion CRE debt portfolio of Signature Bank, a lender that failed in 2023. Blackstone has pushed into the sector to capitalize on banks' retreat, deploy capital and secure higher-yielding investment opportunities. The company is executing the deal through its Blackstone Real Estate Debt Strategies arm, which currently manages $76 billion of assets, including $8 billion it raised in March for one of the largest real estate debt funds ever. Morgan Stanley served as the sole structuring adviser to Atlantic Union, while Citigroup Global Markets and CBRE National Loan & Portfolio Sale Advisors acted as financial advisers to Blackstone. (Reporting by Niket Nishant in Bengaluru; Editing by Mohammed Safi Shamsi and Shinjini Ganguli)
Time of India
27-06-2025
- Business
- Time of India
Blackstone buys $2 billion of CRE loans from Atlantic Union Bankshares
BENGALURU: Alternative asset manager Blackstone has bought nearly $2 billion worth of commercial real estate loans from regional lender Atlantic Union Bankshares , further extending its aggressive push into the CRE sector. The loans were bought at a slight discount to their face value, the companies said on Thursday. The loans originated from Sandy Spring Bank , which Atlantic Union bought in a $1.6 billion deal in April. The sale enables Atlantic Union to swiftly reduce its exposure to CRE loans, a segment that has been under pressure due to elevated interest rates and increasing office vacancies driven by the rise of remote work. Proceeds from the sale will enable Atlantic Union to pay down costly deposits and expand its portfolio of securities investments, the company said. "We view the sale as a positive, as completion of the transaction at a reasonable price had been a question for some," Raymond James analysts wrote in a note, reiterating their "strong buy" rating on the stock. Meanwhile, for Blackstone, the deal was another opportunity to acquire CRE assets at a discount. The company has been ramping up its exposure to the sector over recent years, notably through the acquisition of a stake in the $17 billion CRE debt portfolio of Signature Bank , a lender that failed in 2023. Blackstone has pushed into the sector to capitalize on banks' retreat, deploy capital and secure higher-yielding investment opportunities. The company is executing the deal through its Blackstone Real Estate Debt Strategies arm, which currently manages $76 billion of assets, including $8 billion it raised in March for one of the largest real estate debt funds ever. Morgan Stanley served as the sole structuring adviser to Atlantic Union, while Citigroup Global Markets and CBRE National Loan & Portfolio Sale Advisors acted as financial advisers to Blackstone.
